about and how much information to collect and how much is too much and what information is available and what should be protected? what notice is sufficient and what type of consent is necessary to protect consumers from the unknown? these are questions i had to grapple with to those being privacy legislation which i have a good draft of but i tried to lay out broad privacy goals for industry to reach them and the goal of the legislation is to empower consumers so they can make their own privacy choices and my draft legislation has entities to provide consumers with easy to understand language what information is collected and how the information is being used. also for the ftc approved five years self-regulatory

program prescribes requirements to ourself regulatory consumer dispute and h.r. 1263 this draft takes it with a different approach the balance is the privacy of innovation. creek dr. was involved with asking comments that he and i have developed and received a 70 different organizations universities and colleges and these were very helpful and i have used them in my draft it is very complicated the it to seek the input from others but

ultimately we should have a privacy bill out of the subcommittee to get to the full committee to get into discussion perk rival conclude by saying something that was said earlier when marty 2% we are on the cusp of a new revolution come with this is an exciting time for all of us and for securely when you see the new products to have the use of them we must continue to rely on the free market to let the government step in as will rogers said the whole internet was devolve without government and continues to evolve without government and is some point* there should be privacy protection who even today do not realize how much information mated good

lowered take a liking to you but not too soon. [applause] [laughter] >> he has agreed to take a few questions. please identify yourself and your organization. >> please wait for the microphone. >> telecommunications report could you expand on the five-year fcc program with the enforcement power? >> it will have the enforcement power but the idea is to get it started is to somehow indicate to the public that these are the goals it will be self regulatory s sort of a broad

sense and to allow this to move forward. many of us would like to see the ftc come up with the good housekeeping seal of approval so countries could abide by the regulations then could receive the good housekeeping seal that goes along way to give assurance and don't have to read the fine print. that is the idea. >> you had mentioned it is important consumers to decide how much is too much with information collection so does that require access requirements of they have an idea how much is being collected? >> and the bill the idea is to give the consumers the choice.

i think in america we all have credit reports and access to the credit reports we cannot tell them to stop collecting and we cannot tell businesses they cannot stop collecting but certainly we should be able to see that information much like you get your credit report. that consumer could decided to images collected then decide to opt out. the consensus that i feel from talking to the people is if you rely on the consumer to make the choice, that is the best model. >> congressmen is there any public interest with a government that occurred

jane wore mandated technology to block her adds? talk about advertising support for internet publishers is there any public interest to advocate the use of that technology? >> you may have a a government sets of the incentive savaiko blocks that adds? i think it industry will do that without the government providing incentives. just like many of us have the tivo and that could record and block adds. if the consumer feels that he or she should buy that but the government should not provide incentives but many times we think they are flattered better tailored toward the issues and asian and maybe concerned about the huge amount of information collected what

you buy and how this comes together with your voter registration and where the art educated and it is mind-boggling to think what someone could develop of profile of view. >> i just have a question regarding your views on consumer education. what extent are they responsible for their own safety? is a free for all when anybody can search year or search there but at what time or point* are they responsible for their own deprivation? >> a good question because people go on to the internet are young children and senior citizens that have no prior experience with the

internet to just to keep the email with their grandchildren and go about it without understanding of lot of this is track. education is extremely important to have a consumer that is knowledgeable otherwise people take advantage. the aspect of reciprocity on the internet the consumer is not aware we need to have reciprocity with countries where that occurs of education is a big part of that they could provide the education and that is why may consider the ftc could sense of approval they do with a reputable firm. >> we have time for one more

question. we will take the last two questions. >> i'm anxious to see the broad goals that you outlined in the beginning of your legislation and wonder if the first order of business is to take the ftc has self regulation it already meets the goals you have laid out that would eliminate the need for a whole new set of rule making. >> can i tell you a secret? the ftc does not have a lot of people and have told us to do a lot of things we have talked about. the cell phone numbers are being made public if you do not want people to call you you have to call the number add to that ftc but want and shortcoming government has never done that in the past to see how well the existing situation is and when it comes up that is a good

question for the commissioner. what do you do to reevaluate right now? the effectiveness before you do any more? said is a good challenge for the net neutrality and made it part of title one with the court saying they have no jurisdiction to do that sell the house side tries to fight them regulating the internet when there is no need at this point* to do it. >> nice to see you again congressmen and thank you for your leadership on the issue. of the health care industry has invested fast fortunes to conform to hipaa over the last decade and does your bill have the explicit car about four entities and activities regulated by his book? >> yes.

part of the bill we will make sure we're not duplicating that because that personal identifiable information dealing with finances and health has already been stipulated and we're just trying to deal more about the consumer going on to the internet to realize he or she will be tracked and information collected and we want them to have experience what website they will deal with. >> thank you so much. >> thank you. [applause] >> we also have a great panel following that great speech. i will have aegis be between eight and 10 minutes. we have adam out there who

will remind them when the time is close to running out. the first speaker is mr. kovacic also at the ftc this audience does not need to be told that the ftc report was the staff report and bill did not necessarily endorse that and wrote the concurring opinion that raised interesting and important questions. he also served in has been a commissioner since 2006 through march 2009 and also served as general counsel to the ftc and prior to that he was at the law school faculty out of several places that most recently george washington university.

it is a pleasure. [applause] >> they give for the opportunity to participate in the discussion. i will do two things this afternoon to give a summary of the principal observations of the ftc staff report them to identify three issues i think are valuable to consider to think about the policy. the ftc staff report has five basic and -- ingredients in one is a proposal that firms protect what the report calls privacy by design to take account of the full cycle of a product or service and privacy considerations to ensure that concerns are taken into account, not to retrofit systems at a later point* but think about these considerations from the

beginning. second, the report suggests giving consumers greater choice concerning the collection and use of data beyond what might be considered commonly accepted or understood practices. it is with this connection the commission staff has suggested consideration of the do not track mechanism to limit the capacity of specific information services companies to follow them throughout cyberspace as they visited different sides to collect data about their visit. third, it suggests greater transparency acute -- echoing themes of congress man's terms -- stearns just mention the way data is collected and use part of the fourth element is to provide greater access with the data that is collected and to calibrate the amount

of access according to the sensitivity of the data that has been collected. and to encourage all participants in the services sector and trade associations and academics and others to engage in greater efforts to provide education the. about what? to educate more carefully about the manner in which it is collected and how did it is used to provide a fuller explanation of how the full life cycle of day dead takes place. let me identify what are three important issues associated with the consideration of proposals for others. who will do this? what public policy will be responsible? the ftc report is very light candid on the question of the future design and the department of commerce was much more informative to raise the issues. looking at the archipelago

concerning privacy, you have a wide array of federal-state and local activity concerning collection and use of information that the federal level you have a mosaic of industry specific controlled damning with health care and other generic requirements applying to companies more broadly. if you stand back and look, the house whose first elements were constructed along time ago a succession of owners adding pieces now you have a day building with lots of glass and a modern structure built into the ground and when you stand back and look at the entire structure you say who built that? parts of it are connected some you have to run outside from one building to another and a very useful question to ask is how to address this?

do we knockdown everything that is their to come up with a single rationalize the system that we attempted to do with different degrees of success? do we build a dome on top of the structure was designed regulatory functions with institutions that already exist or do we provide links between the existing structure passageway through which officials will operate overtime and how do we link this to international decision-making with dave pervasive distrust of decision-making by executive branch institutions that were thought to be linked as opposed to independent agencies that have greater freedom to maneuver and the ftc is independent of the other end of the avenue but a deeper question about who

makes policy-making and who should be responsible for the synapse of international institutions. what is the strength of the assumptions of the commerce report and the ftc report? it was an opportunity to do detailed canvassing to assemble what we know about practices of a comprehensive way of the a future academic that this canvassing would have been a good way to put the report together. that opportunity was not take in here. it replies -- relies heavily not only observation of our own experience going back through 1970 the fair credit reporting act but also workshops upper informative. a key question that arises is with respect to building

building, exactly what do these do we expect to take a step by step? how much will this cost? is worth bearing but the report does not say at a great deal about what we think the specific steps may be in the costs associated and as best we know them now on the part of consumers, what do they want? with respect to what data? there is a body of information about this but in neither report to ic that body of reformation brought to bear 1/8 precise way and what is the feasibility of different techniques for the do not track proposal? last question is the policy steps ahead? i had one of the questions that suggested with a great

deal of effort with technology providers with the do not track mechanism and efforts on the part of individual internet based companies to adjust policies, this happens for three reasons. there is a response to visible consumer preferences about how consumers wanted to be followed or not followed the throughout cyberspace. so to a growing awareness about what they want, second, the fear of a disaster. if you have the exxon valdez, you have regulatory response with a vengeance that cannot possibly be described a and how they calamitous failure could affect policy-making has been a major inspiration to rethink those projections but alas, there is a shadow the possibility seen one way and use the threat to of

intervention on the part of the ftc in the form of legislation and all of those have aspired to adjustments and their taking place relatively quickly. are not one place goes by with a significant step with promising consequences being taken precaution policy makers go ahead? one approach is light handed mandatory requirements but a period of time how we sought industry inspired development take place. here is the dilemma. you are contemplating changes, i do believe the promises of the regulators that if you act we will be satisfied? or is that something like what you see in academia a process in which you never altman they satisfy the referee? they what more you never

come up with what they want? with the consequence the desired destination turns out to be a mirage. you grow through the desert of the effort and you do not have any water but another sand dune. but the desire to make changes of questionably has been inspired in part by the possibility of greater stronger of oversight. a difficult question is should we have a period harry reid see how the adjustments turnout and what is the form of compulsory intervention to press those developments or to assess the actual steps taken and the quality and notice many of the discussions with the commerce report an ftc report and the discussion is

very fuzzy on the mix of compulsion and voluntary industry action that should be used to go forward that is more specific with a complete discussion as well. thank you. [applause]